We've known for years that the U.S. Postal Service was in trouble and operating at a loss. It has been so slow to respond to changing circumstances largely because of union contracts that are in place and are inflexible. Even when the post office announced the closing of many offices throughout the nation, when asked if that would mean mass lay offs, the response was that the cuts would be through attrition.
That had to be the response since the contracts would not allow the government to cut back on employees pay or benefits to correspond with the decrease in demand for services. Even if government postal service were to be eliminated, the contracts for benefits to former union employees would still be paid. There's something wrong when union contracts cannot be renegotiated to fit the circumstances such as becomes necessary in private business at times for non-union workers in order for the business to stay solvent. Non-negotiable union contracts are the reason for many of the financial woes in the country in cities, states and businesses. It's one thing to negotiate a contract and another to pay the price. As a nation, we are paying the price, and it is hurting us all.